HARARE – The introduction of bond notes will not solve the economic problems that Zimbabwe is faced with as the governing party is suffering a crisis of legitimacy, the Zimbabwe People First (ZPF) led by Joice Mujuru has said.
In a policy paper titled ZPF Position on the RBZ’s (Reserve Bank of Zimbabwe) Response to Liquidity Problems & the Proposed Bond Notes, the former Zanu PF stalwart, who is expected to take Mugabe head-on in the 2018 elections, said the issues of legitimacy must be addressed first.
“What is manifesting as a liquidity crisis is actually a crisis of governance. It is trite that just like an economy, a government can only be as sound and legitimate as the confidence its citizens have in it. This cannot be the case with regards to the Zanu PF government.
“Given their record of governance since the elections victory of 2013, the current government has undoubtedly failed to instil confidence in its citizens.
“Notwithstanding the controversy surrounding the election outcome of 2013, government had a choice to run the economy professionally or continue with its populist self-destructive policies,” Mujuru said.
She said the issue of whether a currency is acceptable is a confidence issue, “informed by whether whatever is called money meets the basic characteristics of a stable store of value and whether it is then accepted as a medium of exchange”.
“Thus, the name that the currency assumes is irrelevant. In other words whether it is called Zimbabwe dollar (ZW$), bond notes or whatever name as was the case in 2009, is of no consequence, the crucial characteristic and most importantly its demise ultimately premised on whether it meets the two basic fundamental functions and characteristics of money or the international standard of well-established formats of bills exchange,” Mujuru said.
She, however, warned that the parallel market will lead to the demise of the bond notes as the exchange rate will be inflated.
Mujuru said the Government of National Unity had managed to stabilise the country’s economy, but Zanu PF failed to grasp the principles that kept the economy intact.
She further said that Zanu PF does not have respect for the laws of economics as shown by its policy inconsistency.
“A government that has flexible and discretionary policies that are a subject of clarification every time they are tested by real life application cannot be trusted by any sane being,” she said.
She urged the government to instead adopt the South African rand in place of the US dollar, reduce the wage bill, privatise the State-owned enterprises like Air Zimbabwe and restore basic tenets of good governance, democracy and the rule of law among other issues, if the country is to enjoy any economic improvement.
“The voting process must be open to all agents of democracy that have an interest in achieving a credible electoral process.
“Further, the role of violence in electioneering … have to be dealt with to ensure that they do not interfere with the election process,” she said.